03 February 2012 at 6:50 GMT
EURUSD trading was mixed Thursday with the initial dip bought but the
subsequent rally rejected, resulting in little net change for the day.
But price action from Friday’s high of 1.3235 to Wednesday’s low of
1.3026, has formed a consolidating expanding wedge. This formation has a
bias to break to the upside. This bullish sentiment is enhanced by EURUSD posting a higher intraday low. In view of these
we are bullish above 1.3086
The profit targets are 1.3200, the trend of lower highs, then towards 1.3235, the 7 week peak, and finally 1.3300
The risk to this call is that buying interest is weaker than currently
assessed. This would be signalled by a move through 1.3086, Thursday’s
low.
